Intro to BusinessCHAPTER TWOThe New Ethical Environment

Intro to BusinessCHAPTER TWOThe New Ethical Environment Business ethics are continually in the news.

Intro to BusinessCHAPTER TWOThe New Ethical Environment Business ethics are continually in the news. Investigations, lawsuits, arrests, convictions, etc

Intro to BusinessCHAPTER TWOThe New Ethical Environment Business ethics are continually in the news. Investigations, lawsuits, arrests, convictions, etcTheses stories obscure the fact that many firms are ethical

Intro to BusinessCHAPTER TWOThe New Ethical Environment Business ethics are continually in the news. Investigations, lawsuits, arrests, convictions, etcTheses stories obscure the fact that many firms are ethicalMost Americans feel that their employers keep promises and respect and honesty is on the riseMost business owners and managers lead companies without breaking the rules

Intro to BusinessCHAPTER TWOThe New Ethical Environment Business ethics are continually in the news. Investigations, lawsuits, arrests, convictions, etcTheses stories obscure the fact that many firms are ethicalMost Americans feel that their employers keep promises and respect and honesty is on the riseMost business owners and managers lead companies without breaking the rulesGEs CEO says that a firm stays on the most admired list due to virtue, execution, growth and great people.

Intro to BusinessCHAPTER TWOThe New Ethical Environment 3. Not all firms meet ethical standards

Intro to BusinessCHAPTER TWOThe New Ethical Environment Not all firms meet ethical standardsAmericans feel that greed, poor values, and disinterest in preserving jobs affected too many companiesAlso feel that executives felt that preserving was a business issue, not an ethical issue

Intro to BusinessCHAPTER TWONew Government RegulationsSarbanes-Oxley Act

Intro to BusinessCHAPTER TWONew Government RegulationsSarbanes-Oxley ActSet new rules for business trading and financial reportsEstablishes new regulation for securities trading and accounting practicesRequires companies to publish their code of ethics and inform public of changes in it Forces CEOs to make sure that financial statements are accurateIt may encourage companies to write codes and guidelines

Intro to BusinessCHAPTER TWONew Government RegulationsUS Sentencing CommissionCreated by the federal government to create and enforce standardsInstitutionalizes ethics compliance programs and sets high ethical standards for corporate conduct

Intro to BusinessCHAPTER TWONew Ways for Companies to Regulate ThemselvesEthics Compliance OfficersTo deter wrongdoing and upholding standardsTo train employees to spot fraud and abuseTo investigate sexual harassment and discrimination issuesTo monitor conflict of interest

Intro to BusinessCHAPTER TWONew Ways for Companies to Regulate ThemselvesAudit departments and financial statements are linked to ethics reviewsMost important, CEOs and top officers must now personally sign off on the accuracy of their firms financial statements.

Intro to BusinessCHAPTER TWOIndividuals Make a DifferenceIndividuals can affect ethical expectations and behavior

Intro to BusinessCHAPTER TWOIndividuals Make a DifferenceIndividuals can affect ethical expectations and behaviorWorkers create current state of individual business ethics, and some act illegally or unethically on the job

Intro to BusinessCHAPTER TWOIndividuals Make a DifferenceIndividuals can affect ethical expectations and behaviorWorkers create current state of individual business ethics, and some act illegally or unethically on the jobSurvey shows that 1/3 of workers spend 30 minutes a day on the Internet and Personal BusinessUnethical behavior most often seen was lying, withholding information, abusing or intimidating employees, inaccurately reporting of time sheets and discriminationConsideration of co-workers is a less urgent but growing issue of personal ethics, particularly in tight quarters

Intro to BusinessCHAPTER TWOIndividuals Make a DifferenceTechnology expands the range and impact of unethical behaviorComputers allow anyone with access to steal, change data or shut down a systemHackers are often employees and inside attacks are expensiveIntellectual Property can be more easily stolen. Ie patents and copyrights.

Intro to BusinessCHAPTER TWOIndividuals Make a DifferenceNearly every employee wrestles with ethical questionsSome rationalize behavior. Everyone does itSome act unethically when pressured or forced to meet performance quotasOthers avoid actions that dont mesh with their personal values and morals